Overview
Getting an LLC in Illinois involves a straightforward process. Below, we’ll guide you through the essential steps and provide factual answers to common questions.
How To Get An LLC In Illinois: Step-By-Step
- Choose a Name for Your LLC:
- Choose a unique and available name for your LLC.
- Perform an Illinois LLC name search through the Illinois Secretary of State website.
- Reserve your chosen name if needed.
- Registered Agent:
- Appoint a registered agent with a physical address in Illinois.
- File Articles of Organization:
- Complete the Illinois LLC Articles of Organization form.
- File by mail or online through the Illinois Secretary of State website.
- Operating Agreement:
- Draft an operating agreement outlining the structure and operation of your LLC. Although not required by the state, it is highly recommended.
- Employer Identification Number (EIN):
- Obtain an EIN from the IRS for tax purposes.
- Register with the Illinois Department of Revenue:
- All businesses operating in Illinois must register. You can do it by mail or online.
- File the Beneficial Ownership Information Report:
- Beginning in 2024, Illinois LLCs must submit a Beneficial Ownership Information (BOI) Report.
1. Choose A Name For Your LLC
Check if the name you desire for your Illinois LLC is available in the state. This is important because no two businesses in Illinois can share the same name.
To do this, use the Secretary of State’s Business Entity Search tool to compare your business name with existing ones in Illinois.
Make sure your LLC name is unique by following Illinois’s naming rules to increase the chances of your LLC name being approved.
If you need, you can reserve the name for your LLC for up to 90 days. The cost is $25.
2. Appoint Registered Agent
In Illinois, you need to choose a registered agent for your LLC. This is the person or company allowed to get legal papers and important notices on behalf of your LLC.
Your registered agent can be a person, like yourself or one of your employees, or a company that offers this service.
The registered agent has to meet some requirements:
- If it is a company, it must offer registered agent services.
- The agent must have an address in Illinois.
- The agent must be there in person and ready to get documents during regular business hours.
3. File Illinois LLC Articles Of Organization
To officially establish your Illinois LLC, you need to file the Illinois LLC Articles of Organization.
This document provides essential details about your LLC and serves as the official registration.
To prepare the certificate, gather the following information: your LLC name, the name and address of the registered agent, the purpose of your LLC business, and provide the effective date if different from the filing date.
The Illinois LLC Articles of Organization filing fee is $150, filed by mail or in person.
Once filed, the Illinois Secretary of State will review the document, and upon approval, your LLC attains legal business entity status.
You can undertake this process independently using our step-by-step guide or opt for the convenience of hiring a company for assistance.
>> Get the Northwest Registered Agent $39 Deal <<4. Create An Operating Agreement
An operating agreement is a document that shows how your LLC will do business.
While Illinois doesn’t make it a must, having one is crucial. It helps in different ways, like resolving money disputes or potential legal issues. Without it, the courts decide based on state laws, not necessarily what’s best for the LLC.
The agreement can include things like the LLC’s name, address, how long it will last, the registered agent’s details, info from the articles of organization, the business’s purpose, member contributions, how profits and losses are shared, rules for new and leaving members, how the LLC is managed, and clauses about protection and responsibility.
5. Obtain Employer Identification Number (EIN)
The Internal Revenue Service (IRS) gives your LLC a nine-digit number called an Employer Identification Number (EIN) to identify it for taxes. You can get your EIN by mail or online through the IRS.
This number helps you:
- File and handle taxes at both the state and federal levels.
- Open a bank account for your business.
- Apply for permits and licenses.
- Hire employees.
Obtaining an EIN is FREE.
6. Register With The Illinois Department Of Revenue
Business Registration in Illinois is mandatory for those conducting business in the state or with Illinois customers. This requirement applies to various entities, including sole proprietors (individuals, married couples, or civil unions), exempt organizations, and government agencies withholding for Illinois employees.
To register your business, you can either electronically register through MyTax Illinois (which takes about one to two days to process) or complete and mail Form REG-1.
7. File The Beneficial Ownership Information Report
Starting in 2024, many Illinois LLCs must submit a Beneficial Ownership Information (BOI) Report to the Financial Crimes Enforcement Network (FinCEN).
This is a new rule, and the deadlines can be a bit confusing. For LLCs created in 2024, the report is due within 90 days of registering with the Illinois Corporations Section.
If your LLC was registered before 2024, you have until January 1, 2025. LLCs established in 2025 or later must file within 30 days of formation.
The BOI Report requires details about the person who filed your Articles of Organization (your LLC organizer) and all individuals with at least 25% ownership or substantial control over your LLC’s operations and finances.
Review: What Is Needed To Form An LLC In Illinois?
To form an LLC in Illinois, you need:
- A unique LLC name.
- Articles of Organization
- Registered Agent information.
- Operating Agreement (recommended).
- Employer Identification Number (EIN).
What Forms Do You Need To Get An LLC In Illinois?
- Request to Reserve LLC Name
- Articles of Organization (online)
- Articles of Organization (PDF)
- Illinois Business Registration Application
- EIN Application Form
- BOI Form
How Much Does It Cost To Start An LLC In Illinois?
The cost to start an LLC in Illinois involves several steps, each with its own associated fees:
- Articles of Organization Filing Fee: $150
- Name Reservation Fee (if needed): $25
- File LLC Annual Report before March 31st, starting one year after formation: $75
What Is The Illinois Annual Report?
Illinois LLCs need to submit a yearly report known as the Annual Report to the state. This report ensures the government has current contact details for your business and is informed about any changes in ownership.
It is due on March 31st each year, starting one year after formation.
The annual report fee in Illinois is $75, but the late fee is $100.
How Long Does It Take For An LLC To Get Approved In Illinois?
If you send your LLC application by mail, it will be approved in 10-15 business days, plus the time it takes for the mail (3-4 weeks in total).
However, if you file online, your LLC can be approved in 10-15 days.
What Are The Benefits Of Getting An LLC In Illinois?
- Limited liability protection for members
- Pass-through taxation
- Flexible management structure
- Credibility for business transactions
Is Illinois A Good State To Get An LLC?
Whether Illinois is the right state for your LLC depends on where you live and do business. If you live or operate in Illinois, it makes sense to start your LLC there.
Getting An LLC In Illinois: Next Steps
Once your LLC is registered, you can:
- Get the permits and licenses you need for your business, like health or zoning permits.
- Register your business with the state’s tax agency.
- Open a business bank account.
- Apply for a business credit card.
- Buy insurance for your business.
- Safeguard your name and logo with a trademark.
To maintain your LLC in Illinois, you must:
- Update any changes to the registered agent or business address promptly.
- File an Annual Registration report.
- Pay Taxes (owners file their individual tax returns)
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Conclusion
Forming an LLC in Illinois involves a few key steps, from name reservation to obtaining an EIN.
Carefully following the process ensures a smooth establishment of your LLC.
For more detailed information and to access the necessary forms, visit the Illinois Secretary of State website.
